Bitcoin crash: Why BTC price dropped below $100k today
Bitcoin fell below the significant psychological threshold of $100,000 for the first time since June, triggering a major sell-off in the crypto market. The decline, driven by worsening macroeconomic conditions, ETF outflows, and heightened liquidations, resulted in a $300 billion market cap loss for the crypto sector. Bitcoin's price briefly dropped to $99,954 but rebounded slightly to $100,269, marking a 6% daily decline. Factors such as concerns about new tariffs, potential Federal Reserve rate cut pauses, and risk-off sentiments contributed to the downturn, with 24-hour liquidations reaching $1.4 billion. Traders now eye $98,000 as the next major support level for Bitcoin.
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Bitcoin Breaks Below $100,000: A Psychological Barrier
Bitcoin crashed through the critical psychological level of $100,000, marking the lowest point since June and dragging the broader crypto market down with it. This plunge has sent waves of uncertainty across crypto investors.
Market Impact: A Widespread Sell-Off
On Tuesday, Nov. 4, the BTC price dropped to a daily low of $99,954, triggering massive liquidations and sharp declines in crypto assets. The crypto market cap fell by 6.4%, wiping out more than $300 billion in value. While Bitcoin rebounded slightly to $100,269, it still registered a 6% daily decline.
Why Did Bitcoin Drop? Worsening Macro Conditions
The sudden decline stemmed from deteriorating macroeconomic conditions, including fears of new tariffs and the Federal Reserve's potential pause on rate cuts. This combination reduced investors' appetite for risk assets, leading to a cascade of ETF outflows and a spike in liquidations.
For instance, Bitcoin (BTC) and Ethereum (ETH) ETFs recorded their fifth consecutive day of negative flows, while 24-hour liquidations reached $1.4 billion, with $1 billion dominated by longs.
Bitcoin's Historical Context and Key Support Level
The $100,000 mark had served as a crucial psychological and technical support level for Bitcoin in recent months. The last time Bitcoin fell below this level was on June 23, when it hit a daily low of $99,705. Analysts now expect traders to monitor the $98,000 support level, a critical high-liquidity zone, as downside pressure continues to build.
Implications and Global Context
Amid this downturn, the U.S. dollar has shown signs of recovery, rebounding slightly following the Federal Reserve's interest rate cuts in September. The correlation between macroeconomic changes, crypto price movements, and ETF flows highlights the increasing interdependence between traditional and digital financial markets.